Lessons to Learn from a Market Downturn (1 of 7) Lessons to Learn from a Market Downturn (3 of 7)

Lessons to Learn from a Market Downturn (2 of 7)

by
No Such Thing As A Sure Thing: That stock you thought was a sure thing just tanked. The lesson: Sometimes the unpredictable happens. It happens to the best analysts, the best fund managers, the best advisors, and, it can happen to you. The perfect chart interpretation, fundamental analysis, or tarot card reading won't predict every possible incident that can impact your investment.
Use due diligence to mitigate risk as much as possible. Review quarterly and annual reports for clues on risks to the company's business as well as their responses to the risks. You can also glean industry weaknesses from current events and industry associations. More often, an investment is impacted by a combination of events. Don't kick yourself over unpredictable or extraordinary events like supply-chain failures, mergers, lawsuits, product failures, etc.
Source: http://www.investopedia.com/articles/basics/08/lessons-market-downturn.asp